Attention Not For Profit clients:
Charitable Trusts and Charitable Companies Annual Reminder
This is our annual reminder to our Not-For-Profit clients on annual filings with:
- the Registrar of Titles (ROT) for charitable trusts and
- the Registrar of Companies (ROC) for “charitable companies” likely to be Companies Limited by Guarantee (CLGs) (because some Not-For-Profit entities in Fiji are organised as CLGs).
Annual Returns – Charitable Trusts
The Charitable Trusts Act 1945 (CT Act) requires charitable trusts to file annual returns at least once a year.
To maintain compliance and avoid having incorporation cancelled, charitable trusts should ensure their audited accounts and financial governance processes are in order for timely annual filings. Charitable trusts should respond promptly in the event the Registrar issues a notice, setting out the trust’s intent to comply with the requirement. In the event of potential delays in filing, charitable trusts should inform the Registrar in order to avoid further complications.
Our 2023 Annual Return Reminder Alert sets out the requirements and relevant law for charitable trusts in more detail.
Financial Statements – “charitable companies”
The Companies Act 2015 (CA) requires charitable companies which may be CLGs to prepare and file financial statements each financial year[1].
Under the CA, a charitable company includes companies that receive donations (whether in cash or kind) for charitable purposes either locally or from abroad. Charitable purposes has the same meaning as set out under the CT Act[2].
If returns are not filed on time
In the case of a charitable trust, the ROT has the power to publish information on non-compliant charitable trusts and to cancel their incorporation once a notice has been published in a newspaper and the Gazette. In 2022, a crackdown on non-compliance led to several cancellations of incorporation when notices were ignored, causing costly and disruptive re-incorporation processes that also strained relationships with donors and financial institutions.
Charitable companies could have their information (i.e. names of directors and members) published or made publicly available by the ROC for non-compliance.
If you have any questions regarding this Alert, please contact either Richard Naidu, Glenis Yee or Karthik Chandra.
Disclaimer
The information and opinions in this Legal Alert are for general information purposes only. They are not intended as specific legal or other professional advice and should not be relied upon or treated as a substitute for specific advice. Munro Leys can accept no responsibility for any loss arising from reliance on the general information contained in this Legal Alert.
[1] s.388A of the CA
[2] s.2 of the CT Act